The current price of Netflix was last seen in November 2017! That is an extraordinary fall from grace for the much beloved streaming giant.
It currently trades at 2.5 Price / Sales, and with a P/E of 14.7. With a top line revenue growth of 9.8% QoQ which is down from 24.2% the same period 1 year ago.
It seems to be that the market doesn't think that Netflix can do much more that it has already achieved. Their move to leave it's Russian customers looking for alternatives was a puzzling move. My guess is that they will return to Russia once it is viewed as acceptable by whoever they are trying to please (because it clearly isn't shareholders!!).
Another thing that puzzles me is that management and directors aren't buying stock of Netflix at these levels. I would have thought at the very least they would be pulling a Shopify and start sending some positive sentiments back into the market that they the insiders of the company think the current prices represent a bargain vs the intrinsic value.
In the back of my mind I wonder if this is another Twitter situation where they have built a tremendous platform but have veered too far left of the political spectrum and are appeasing the wrong group of folks. One simply needs to view some of their more recent content to get a sense that they are really pushing some sort of agenda (watched 'He's expecting' anyone?)..but unlike Twitter they won't get a buy-out offer so these changes will have to come from somewhere within which again is unlikely.
And from what I can see the best that Netflix have come up with to take advantage of their incredible platform is to improve/cut down on password sharing and then introduce an cheaper ad-based subscription. These are hardly impressive, blow your socks off, initiatives.
So perhaps the market cap of 70b is warranted, for the time being... But I think watch this space because shareholders have a habit of loosing patience with management pretty quickly, especially if the stock price lingers down at these levels for a while.